Q4 net profit soars 69%! New Dairy's 2025 revenue and profit both increase, and the five-year strategic efforts are showing results.

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On the evening of March 22, 2026, New Hope Dairy released its 2025 annual report. During the reporting period, the company achieved operating revenue of 11.233 billion yuan, a year-on-year increase of 5.33%; net profit attributable to shareholders of 731 million yuan, up 35.98%; net profit after non-recurring gains and losses of 774 million yuan, up 33.76%; sales net profit margin increased by 1.57 percentage points year-on-year; asset-liability ratio was 56.51%, down 8.10 percentage points from the beginning of the period, with continuous optimization of operational quality. In the fourth quarter of 2025, the company’s revenue grew double digits, and net profit attributable to shareholders increased by 69% year-on-year.

In terms of shareholder returns, the company continues to focus on its main business, constantly improving operational and governance levels, and enhancing the sustainability and stability of dividend policies with steady performance. The mid-year dividend for 2024 and the full-year dividend for 2024 implemented in 2025 increased by 90% compared to the previous year. The company plans to continue increasing the total dividend for the full year of 2025, sharing development dividends with investors, and promoting a virtuous cycle of “governance improvement—performance growth—value sharing.”

This is a remarkable achievement for New Hope Dairy during the industry’s deep adjustment period. It not only marks the firm steps and steady growth in the company’s “Five-Year Strategic Plan” but also clearly demonstrates a systematic innovation centered on the “Fresh Cube Strategy,” through product innovation, technological empowerment, channel reform, and brand upgrading. In a market where industry growth is slowing, the company is opening new growth paths, continuously optimizing governance and value enhancement, and achieving high-quality development with excellent efficiency.

The power of “fresh” transcends cycles, anchoring growth through consumer-driven and policy favorable factors.

According to the National Bureau of Statistics, in 2025, the national milk production was 40.91 million tons, a slight increase of 0.3%. China’s dairy industry is shifting toward deep competition focused on quality, structure, and efficiency. The consumer market shows significant differentiation: on one hand, becoming more rational, paying attention to product value-for-money; on the other hand, the demand for health, nutrition, and functionality continues to upgrade, providing broad space for structural upgrades in the industry.

At the macro policy level, positive signals continue to be released. Seven departments jointly issued the “Guiding Opinions on Promoting Growth in Dairy Product Consumption,” and twelve departments released the “Special Action Plan for Promoting Healthy Consumption,” emphasizing improving healthy eating habits and expanding supply of high-quality health foods. Recently, the Ministry of Agriculture further proposed the “Add Milk” initiative, encouraging increased dairy consumption to improve national nutrition and health. These initiatives align with New Hope Dairy’s long-term focus on “freshness” as its core value, dedicated to the development of freshness, nutrition, and health, providing a favorable policy environment to consolidate and enhance its “Fresh” advantage.

Against this background, the performance of New Hope Dairy’s ongoing and upgraded “Fresh Cube” strategy is particularly exemplary. During the reporting period, the company’s core low-temperature business segments—fresh milk and yogurt—achieved double-digit growth, directly confirming its forward-looking focus on high-quality, fresh products. The company’s continuous improvement in profitability and shareholder returns demonstrates excellent growth quality and operational capability, aligning with the internal requirements of the “14th Five-Year Plan” to improve governance efficiency and promote high-quality development.

User-centric, product innovation and channel deepening drive dual engines

The growth engine of New Hope Dairy is rooted in the systematic construction of the “fresh” value, with a user-centered approach. It has created a comprehensive “freshness assurance system” covering “fresh milk source, fresh orders, fresh production, fresh delivery, and fresh arrival,” as well as the “Eight Fresh Capabilities” in brand value—“Fresh Sight (customer experience), Fresh Enjoyment (scene penetration), Fresh Movement (user interaction).” This forms a complete operation system from product innovation to terminal delivery, truly making “freshness” visible, tangible, and perceptible to users.

Precise focus and continuous innovation in product matrix are the direct links between users and freshness, and the primary driving force for enterprise development. During the period, New Hope Dairy continued to promote the “Fresh and Acid Dual Strength” strategic categories, deeply exploring their value. Through product innovation and multi-dimensional channel cultivation, the company steadily increased market share. In 2025, high-end fresh milk and “Today’s Fresh Milk Shop” both achieved double-digit growth; specialty yogurt grew over 30% year-on-year, with functional yogurt brand “Huorun” series leveraging trends like value-for-money, meal replacement, and zero sugar to iterate and innovate. Asahi’s best-selling new products launched on Vipshop also contributed to rapid growth. Notably, new product revenue has maintained double-digit proportions for five consecutive years, becoming an important engine for stable business growth.

Deep transformation and full-channel breakthroughs in distribution networks are key to ensuring “fresh” reaches consumers directly. During the period, New Hope Dairy continued to promote a DTC (direct-to-consumer) channel transformation: on one hand, subscription penetration and mode innovation drove growth, with self-commissioned subscription business further refining flexible supply chains and delivery systems, aiming to build an integrated advantage of “product—delivery—service—brand”; on the other hand, offline “Milk-Drinking” stores, which restore the “fresh and lively” ritual of “freshly poured and consumed,” have become important offline traffic activation points. Online, the company rapidly built a live broadcast matrix to achieve efficient exposure; the membership operation platform laid a solid foundation for refined user management and full lifecycle value mining.

In emerging channels, the company seized the development opportunity of O2O (online-to-offline) instant retail, strengthening the “fresh + instant” advantage through agile models like “Lightning Warehouse,” achieving rapid growth and becoming a new growth engine. Meanwhile, refined operations in member stores, snack discounts, and deepened cooperation with tea and catering channels have also shown significant results, leading emerging channels in sales growth.

Strengthening the foundation with technology and resonating with brands for long-term value

During the period, New Hope Dairy’s continuous investment in core technology R&D and top-level brand building laid a solid foundation for its long-term development and ensured sustainable growth. In 2025, the company’s lactic acid bacteria research team led the formulation of three industry standards, applied for 39 patents, and won the first prize for technological progress from the China Dairy Industry Association, along with multiple provincial science and technology awards.

With the vision of “a technology-driven nutritional food enterprise,” New Hope Dairy deepened its biological innovation strategy, focusing on basic research in biological fermentation, enzyme engineering, and precision nutrition. It has built a resource bank of over 2,100 strains of special bacteria, with self-developed strains stably applied in strategic products like Huorun and Chuxin. The company’s proprietary strains successfully carried out space mutation experiments aboard the “Practice No. 19” satellite, returning with results, marking a leap from ground screening to space breeding in core strain development, and reserving strategic resources for future development of more differentiated functional products.

To accelerate the “digital and intelligent” transformation of new quality productivity, New Hope Dairy adheres to the concepts of “data-driven operations” and “value-oriented, scenario-based implementation,” connecting “business—data—finance” closed loops. The integration of digital and industry (“Shuyie”) improves quality and efficiency, with pilot smart tools in marketing, supply chain, and finance, continuously improving management mechanisms, optimizing customer experience, and enhancing operational efficiency.

On the brand communication front, New Hope Dairy demonstrates a more youthful approach, continuously integrating brand values into consumers’ lifestyles. It has shifted from functional messaging to leading lifestyle attitudes, creating emotional connections and cultural resonance, achieving simultaneous expansion in communication reach, emotional depth, and user stickiness. The company’s internal MCN system produces high-quality content with total views exceeding hundreds of millions, forming an efficient flexible communication network connecting with users.

In November 2025, world champion and Olympic medalist Tang Qianting was invited to be the brand ambassador, linking “fresh nutrition” with health and the sports spirit of perseverance, enhancing brand image. The “Chinese-style Freshness” micro-series focuses on daily scenes, becoming a new “mouthpiece” for users. Initiatives like the “24-Hour Fresh Milk Festival” promoting “living fresh,” the “Qixi Bridge Flight” with Chuxin yogurt, collaborations with intangible cultural heritage artisans, and partnerships with IP characters like “Siam Reep,” as well as themed campaigns connecting “Hedong Mountain + Yellow River + Western Xia,” and advocating a lifestyle of “Respect Nature, Love Heaven and Man” all foster emotional resonance. These innovative communication efforts turn “fresh” and “adding milk” from passive marketing or nutrition supplements into an active, joyful healthy lifestyle, stimulating more lasting market vitality from demand.

The 2025 performance confirms the effectiveness and resilience of New Hope Dairy’s “Fresh Strategy” amid complex market environments, aligning deeply with the national “14th Five-Year Plan” for consumption-driven and innovation-driven growth. Through product innovation focusing on low-temperature value, channel reform deepening user links, technological R&D strengthening quality, and brand communication shaping emotional identity, New Hope Dairy demonstrates quality and sustainable growth. With the further promotion of health-oriented initiatives like “Add Milk,” the dairy market, especially high-quality low-temperature dairy, is expected to usher in new development opportunities.

Looking ahead to 2026, as a key year in New Hope Dairy’s five-year strategic plan, the company has clearly stated it will continue to “firmly uphold core values and create long-term growth,” adhere to the “Fresh Cube Strategy,” focus on strategic tracks, explore the second growth curve, and strive for sustained revenue growth and further improvement in net profit margins. Under the trend of health consumption policies and evolving market demands, leveraging its unique “fresh” strength, the company aims to steadily advance on the path of high-quality development, continuously creating value for consumers, shareholders, and the overall competitiveness of China’s dairy industry.

(This article does not constitute any investment advice; all information disclosures are subject to company announcements. Investors operate at their own risk.)